Every pound of government spending will be scrutinised in a major budget review, Chancellor Rachel Reeves has warned.
Ministers have been told that they must find more savings in their departments, with Ms Reeves vowing to wield an “iron fist against waste”.
Departments will be told to brace for “difficult” spending decisions in a bid to restore trust in the government’s handling of public finances.
Every pound of government spending will face a “line-by-line review” involving external finance experts from banks and think tanks in order to ensure it represents value for money, the Treasury said.
It comes as Ms Reeves is set to launch the next round of government spending on Tuesday, with her set to warn departments that they “cannot operate in a business-as-usual way when reviewing their budgets for the coming years”.
She will insist that areas focused on the PM’s “plan for change” will be prioritised, including targets to improve living standards across the country and building 1.5 million homes.
Ms Reeves said: “By totally rewiring how the government spends money we will be able to deliver our Plan for Change and focus on what matters for working people.
“The previous government allowed millions of pounds of taxpayers’ money to go to waste on poor value for money projects.
“We will not tolerate it; I said I would have an iron grip on the public finances and that means taking an iron fist against waste.
“By reforming our public services, we will ensure they are up to scratch for modern day demands, saving money and delivering better services for people across the country.
“That’s why we will inspect every pound of government spend, so that it goes to the right places and we put an end to all waste.”
By Emma Soteriou
